Economy in recovery? Not so fast
February 22nd, 2012
07:46 AM ET
11 years ago

Economy in recovery? Not so fast

New York (CNNMoney) - Employers are hiring, manufacturing is revving up and stocks are rallying. It looks like the recovery could finally be taking hold.

Sound familiar?


Filed under: • Economy • Jobs
soundoff (10 Responses)
  1. Dominican mama 4 Obama

    Yup it's looking really good for the home team isn't it? The coutnry IS headed in the right direction. The President never wavered. He set a course, and told us it would take time and he was right....again.
    Hang in there America. Dow JOnes hit 13,000 the other day; that hasn't happened since 2008. We're rebuilding our crumbling foundation on ROCK not SAND. We'll be better than alright. Righteousness and lustre will surround our country's name once again.
    Obama 2012.

    February 22, 2012 08:24 am at 8:24 am |
  2. Rudy NYC

    I have lots of connections in the construction industry. Construction is one of those leading economic indicators that you hear about in the news. Construction saw the beginning of a slow down in mid-2005, which was undeniable by mid-2006. The recession began two years later in late 2007, and the Wall Street collapse came in mid-2008.

    That's more or less a two year lag between construction and what the overall economy does. Construction has picked up over the past three years in fits and starts, which is no sign of a strong recovery. However, these fits and starts became more sustained in 2011. Volume is picking up, but it is still nowhere close to 2004 levels. I take this to mean that we are still at least three years out, 2015, from putting the financial collapse behind us.

    I think a more realistic estimate based upon the boom-and-bust patterns that you see following aggressive trickle-down tax cuts is that it will not be until 2019 that we will conclusively say the effects of the financial collapse are now behind us. Meanwhile, what happens to the US deficit and annual debt? I think they pace of growth needs to be slowed, which is why I cite the 2019 figure.

    February 22, 2012 08:26 am at 8:26 am |
  3. diridi

    Yes, American Economy is Recovering. If not fast–it is going up in a right direction. Stocks did not fall, despite Iran's threat of cutting Oil to France, and Great Briton. Pres. Obama is so smart, pushing Oil-independence, Energy-Efficiency, Energy-Efficiency even to Buildings level, etc, These are the great signs of this great big nation. Listen, Economy did not collapse yesterday, it did since Reagan. Reagan's Trickle Down, and Bush Iraq War drained this nation's treasury like crazy. True, true, true.
    PS: This nation needs Senate/Congress Term-Limits, and Anti-Lobby laws....

    February 22, 2012 08:48 am at 8:48 am |
  4. truindep

    well I am not feeling it

    February 22, 2012 08:58 am at 8:58 am |
  5. dreamer96

    We should thank Iran...for forcing us to develop oil alternatives...We missed the chance back in the 1970's with the oil embargo...when the average price of gas was just 25 cents and jumped to one dollar...we now have many options...

    If we offered the big coal, and natural gas power plants a tax break for building Algae farms near their plants to feed off the CO2 in their exhaust...thus cleaning up the CO2 from the plant and growing green-oil...that would be worth a tax cut or 15% tax rate on bonds to build those algae farms...or the capital gains earned from a renewable energy ...

    They could also be offered the same tax breaks to work with pure hydrogen generation plants built near by to create pure hydrogen use AC, or DC electrical current and water...That pure hydrogen could be mixed with the CO2 from the coal or natural gas power plants to make methane gas ...what we call natural gas is 90% methane...and is safer to pipe and handle then pure hydrogen gas...the Power Plant could even sell the CO2 to the pure hydrogen generation plant or buy the pure hydrogen and sell the methane...

    Develop cellulose...or pure hydrogen on demand for our cars and trucks...better electric cars..better hybrid cars and trucks...the rail road have had hybrid diesel electric with direct electric drive since the 1950's ...if we use an overdrive in these systems and put them in cars and trucks we reduce the current demands for highway driving and increase the range of battery driving or reduce the load on the generators..

    Many things...ocean current electric generators off Florida's coast where strong currents run...many things to get off oil..

    February 22, 2012 09:04 am at 9:04 am |
  6. gt

    ya think.... all i hear and see are homes foreclosed.... no work... saving gone... no recovery here...

    February 22, 2012 09:22 am at 9:22 am |
  7. Rick McDaniel

    Yes. It sounds very much like the rhetoric of an ELECTION YEAR!

    It is also, just plain lies.

    February 22, 2012 09:29 am at 9:29 am |
  8. diridi

    My advise to Pres. Obama, is to pump more Energy-Efficiency Cars at Cheaper prices. We can do it. Listen, in 1981 when we were making MicroWave Ovens, They used to cost 300/ dollars. Then one company by name, Litton, made the at cheaper price and produced in large scale. Price dropped like hot potato. We need to produce Energy-Efficiency Cars, Hybrid, and Fuel-Cell-High-Volt Cars at cheaper prices. People buy. Also, We as citizens, need to stop driving big vehicles, and conserve our Oil consumption till we get there. Do it, Economy is going to be fine.

    February 22, 2012 09:34 am at 9:34 am |
  9. Four and The Door

    "This year, the recovery is largely on the backs of consumers, so anything that undermines consumer spending would pose a risk to the economy," said Carl Riccadonna, senior U.S. economist with Deutsche Bank.
    According to new research from Moody’s Analytics, the top 5% of Americans by income account for 37% of all consumer outlays. By contrast, the bottom 80% by income account for 39.5% of all consumer outlays.
    At the same time, Obama is determined to raise taxes on Americans earning more than $200,000 a year by letting the Bush Tax Cuts expire just for them. It is obvious his politics overwhelm his economics. The performance of his economic programs have told us that for 3 years. He is not the guy to help pull the American economy back to life. Romney 2012!

    February 22, 2012 10:03 am at 10:03 am |
  10. rs

    An excellent story, and a cautionary one. What with Republicans working overtime to lie, cheat and keep recovery from happening (in their lane attempt to convince anyone they are legitimate contenders to fix ANYTHING), the economy might not get better, and could in fact get worse. Perhaps this is the best reason for keeping Gtmo open- it would serve as a place to store the Republican economic terrorists.

    February 22, 2012 10:10 am at 10:10 am |